The Weather
Cloudy with easterly winds;
slight change in temperature.
C, 4r
Sir igir
Iat&4
Editorials
It's An III lWind,
And Blows No Good...
VOL. XLVIII. No. 87 ANN ARBOR, MICHIGAN, SATURDAY, JAN. 22, 1938
PRICE FIVE CENTS
Circuit Court
UpholdsTVA,
Ends Hearing
Injunction Refused Utility
Companies Who Sought
Invalidation Of Project
Cite Supreme Court
Decision In Ruling
CHATTANOOGA, Tenn., Jan. 21.-
(P)-Tennessee Valley Authority com-
petition with private power compan-
ies was upheld as "lawful" by a three-
judge Federal Court here today. f
The court dismissed an injunction
suit by 18 utilities which challanged
constitutionality of the TVA Act on
grounds that the Authority's low rates
would destroy them, rendering prop-;
erty worthless without just compen-
sation.
"These complainants have no im-
munity from lawful competition," said
the ruling, "even if their business be
curtailed or destroyed."
8,00 Word Decision
Presiding Judge Florence Allen of
the sixth Circuit Court of Appeals
read the 8,000-word decision which
closed ahearing begun last Nov. 15.
Other members of the Court were
District Federal Judges John J. Gore
and John D. Martin of Tennessee.
"A decree will be entered denying
the injunction sought," the Court
said, "dismissing the bill of complaint
and taxing costs against the com-
plaints.",
Most of them are subsdiaries of the
Commonewalth and Southern Corpor-
ation and Electric Bond and Share
Company, operating within 250 miles
of TVA dams on the Tennessee River,
and tributaries.
Competition Lawful
"We conclude that," the Court sum-
marized, "since none of the com-
plainants claims to operate under an
exclusive franchise, no fraud, malice,'
coercion, orconspiracy exists; since
the Authority is not exceeding its
statutory powers, and since the sta-'
tute is constitutional, the competition
with these complainants is lawful.
"It follows that the holding in Ala-
bama Power Co., V. Ickes, (recently
decided in the United States Supreme
Court) squarely applies."
Chief counsel James Lawrence Fly
of the TVA said the decision was "a
milestone in the conservation move-
ment."
Utility attorneys announced a direct
appeal would be taken to the SupremeE
Court.t
Major findings of the decision were
listed as follows:
Chief Findings Listedt
That the TVA did not conspire to
destroy the utilities, to compete il-
legally with them or to coerce the
power companies to sell their facili-
ties at distress figures.
That the TVA did not conspire with
the Public Works Administration to
finance construction of municipal dis-
tribution systems so that TVA power
might be sold at such low rates that
private utilities would be destroyed.
That municipalities were not coer-
ced into purchasing TVA power.
Unemployment Census Director
Warns Of Speeding' Recovery
Auto Heads
Cagers Face
To Playv In Ntt 1.Sot
Senate Committee Hears
Biggers Relate Dangers
Of Renewed Depression
WASHINGTON, Jan. 21.-()-The
nation, having skidded into a reces-
:ion, may soon be heading for future
trouble by speeding up the economic
engine too much, John D. Biggers
testified today.
The director of the Federal Unem-
ployment Census told the Senate Un-
employment Committee that if re-
covery is stimulated by artificial
means, it may come too rapidly. This,
he said, would mean another boom
to be followed by another and pos-
sibly greater depression.
The Toledo industrial leader recom-
mended establishment of a commit-
tee, composed of all of the elements
which have a stake in national em-
ployment, to work out a program
for re-employment of the jobless.
The experience of business after the
1929 crash may have had something
to do with the sharp impact of the
present recession, Biggers said. He
explained that industrial leaders.
fearing a return of depression times,
had curtailed buying at the first hint
of a slump in order to "put their
houses in order."
There were several factors which
acted to increasebusiness fears and
contributed to the slump, he added.
Not the least of these, he said, was
the fear of strikes that caused the
building up of over-large inventories
at excessive prices. The President':
announcement last spring that some
priceswere too high also contributed,
he said.
Among other factors, the witness
listed the curtailment of Government
spending in 1937, the increase in Fed-
eral Reserve requirements, stock mar-
ket margin increases and the sterili-
zation of gold.
Biggers said he thought there was
little to gain from future attempts to
count the number of unemployed,
because there were so many variable
factors to be taken into account. He
said, however, a continuous check
might be made through the U.S. Em-
ployment Service and the unemploy-
ment compensation division of the
Social Security Board.
Pledge Help Crucial Test
ToRoosevelt' At Evanston
Ford, Knudsen, Macauley Northwestern Game Today
B
Present; Condemn 'High 'Viewed As hmporl
Pressure' In Car Selling lI nBig Ten Title h
sifness Revival I icago Interest
Expected In Spring Assures Sell-(
rtant
Race
Out
i
Deputies Vote
For Chautemps
Cabinet, 501-1
Conservatives Unite With
People's Front Parties
In Supporting Ministry.
PARIS, Jan. 21.-(P)-Conserva-
tives united with the People's Front
parties in the Chamber of Deputies
today to give the new Radical-Social-
ist government of Premier Camille
Chautemps its first pledge of con-
fidence by a vote of 501 to 1.
The vote came after the Premier
announced a drastic reorganization of
France's national defense on a vir-
tually wartime basis and pledged his
new government to defend the franc
and carry out the People's Front pro-
gram of social reform.
The Deputies shouted approval as
Chautemps read his cabinet's declara-
tion of policy and asked the formal
vote of confidence.
Conservatives as well as Socialists
and Communists made no promise,
however, that their support would
continue.
Chautemps himself said he accept-
ed the possibility that his government
might be only "a transition ministry."I
The four moderate conservative
groups supporting the new govern-
ment were the Democratic Left, Dem-
ocratic Alliance, Popular Democrats
and Popular Action.
Independents
To Hold Mixer.
Entertainment To Follow
Supper Tomorrow
Police Arrest
352 At Ford
Dearborn Unit
Charged With Distribution
Of Periodicals In Area
Listed As 'Congested'
DETROIT, Jan. 21.-(A)-Police of
suburban Dearborn today arrested
352 members of the United Automo-
bile Workers of America who at-
tempted to distribute union literature
at the gates of the Ford Motor Co.
River Rouge plant.
Those arrested were charged with
violation of a Dearborn ordinance
that designates the road in front of
the Ford plant as a congested area
and prohibits the distribution of
newspapers there.
Union officials said that 1,128 per-
sons had registered at UAW head-
quarters for the distribution, the
fourth attempt by the union to give
its literature to Ford workers.
The distributors massed in front
of the gates and sang union songs
while urging workers to take copies
of the United Auto Worker. Few ac-
cepted the invitation.
Dearborn police used rented buses
and patrol wagons to take the union-
ists to jail where they were registered
and released. James D. Greene,
Dearborn corporation counsel, said no
decision had been reached as to whe-
ther those arrested will be brought
to trial. None of those arrested in the
first three distributions have ever
been summoned to court.
The Ford service department denied
any knowledge of the affair.
Meanwhile, UAW President Homer
Martin, in a letter to allocals sought
to "clarify" a statement of last week
to the effect that the UAW would
agree to pay cuts in businesses forced
into an "extreme position."
The UAW, he said, is willing to
"recognize" certain factors that can
be "adjusted through bargaining,"
but still stands for "the maintenance
of high wage levels."
HARVARD ASTRONOMER DIES
KINGSTON, Jamaica, Jan. 21.-(YP)
-Advices received here today an-
nounced the death of Prof. William
Henry Pickering, 80, Harvard Univer-
sity astronomer and author of nu-
merous astronomical works at Mande-
ville, Jamaica, last Sunday.
WASHINGTON, Jan. 21.-(A')-Top
nen of the great automobile industry
Aledged President Roosevelt their co-
)peration today in restricting install-
nent sales credit and stabilizing em-
ployment.
For an hour and a half they ex-
-hanged ideas with the chief execu-
tive, agreeing with him that "high
pressure" methods of selling cars were
bad and that no one should be per-
nitted to assume an obligation be-
yond his means. Incidentally, they
reported an expectation of better
business in the spring.
Edsel Ford Present
To all intents and purposes, the!
meeting was a realization of Mr.
Roosevelt's proposal that the leading
men of individual industries assemble
with representatives of the govern-
ment to discuss the problems of each
:ndustry as a whole.
Present were Edsel Ford, William
S. Knudsen, president of General Mo-
tors, and Alvan Macauley, president
of Packard. Walter P. Chrysler could
not attend personally, but sent K. T.
Keller, president of the Chrysler Mo-
tor Company, and B. E. Hutchinson,
.hairman of its finance committee,
When they left the President, Ma-
°auley, who also is president of the
Automobile Manufacturers Associa-
tion, acted as spokesman. To waiting
reporters he read a statement upon
which all who attended had agreed.
Discussion Called Helpful
"We hard a board discussion affect-
ing business and government and we
believe it was-very helpful," he said.
"We reported to the President that
we were hopeful a seasonal increase
in sales in the spring will bring im-
provement in business.
"We heard a road discussion affect-
agreement with the President's prin-
ciples on the subject ofinstallment
selling. Properly used, installment
buying has helped and will continue
to help millions of families to a higher
standard of living, with a correspond-
ing increase in employment.
"But high-pressuring customers, or
permitting their desires to take them
into debt beyond their means, is, bad
business all around.
Balanced Society
Needed,_Says Oder
The prediction that "civilization or
order will rest upon the foundation of
the Oneness of Mankind," was made
yesterday by Harlan Oder, formerly a
delegate of the World Court Con-
gress and world traveler before the
Baha'i study group.
We need Edisons," he declared "in
the world of sociology, of government
and religion, that is, we need the type
of mind and heart that searches end-
lessly for new goals and new accom-
plishments." He declared that "the
breaking down of the present order
-while disheartening to many-is
actually paving the way for a new
and higher type of civilization."
Mr. Oder traced the history of the
past decades and said that we have
been given a "highly developed ma-
terial civilization," pointing out that
there has been no parallel develop-
ment in statesmanship, government,
education and religion.
By IRVIN LISAGOR
(Daily Sports Editor)
EVANSTON, Ill., Jan. 21.-(Special
to the Daily)-This staid municipal-
ity is all astir tonight over the im-
portant cage conflict tomorrow night
between Michigan and Northwestern,
a game which may hold the key to
the unpredictable Big Ten race.
Not since an Evanston resident
applied for relief have the burghers
displayed such animation. This could
easily be a scalpers' paradise if Patten
Gymnasium had available space, but
tickets are rarer than radium now
and the S.R.O. sign will be draped
across the gate early tomorrow eve-
ning.
Game A Sellout
Even the players, who usually pass
out their comps gratis, have found
fans ardent enough to contribute like-
ly sums to their education in ex-
change for choice pasteboards. It's
a sellout, in other words, because fan-
dom in Chicago and hereabouts sense
the title possibilities of the two con-
tenders.
The Michigan - Northwestern
basketball game will be broadcast
at 8:30 p.m. tonight over WIND,
Gary, Ind. The station is located
at 520 kilocycles.
Both the Wildcats and Wolverines
have lost only one Conference tussle.
Purdue-the third membernof this
league-leading triumvirate-checked
Coach Dutch Lonborg's five last Mon-
day, while Wisconsin was tripping
Coach Cappon's unbeaten quintet.
Townsend Improves
Interest, as usual, has been stimu-
lated by Capt. Jake Townsend's pres-
ence for the first time this season
in the Northwestern sector. Jake had
a bad night against the Badgers, but
appeared to have regained his clever-
ness and basket-bagging astuteness
during the drills this week.
In an effort to prevent complete
bogging of his attack when Townsend
is tied up, Coach Cappon has tried
to get lanky Jim Rae, the capable
sophomore center, to shoot faster
and oftener. Rae's difficulty has been
his deliberateness, the urge to bounce
the ball a couple of times before
popping it. If he learns to get rid
of it quickly, the jamming in the
forecourt may be somewhat alleviat-
ed.
Smick In Back Line
As an experiment, Coach Cappon
has worked Dan Smick in the back
line during the week. Normally a
center sharing the pivot, Smick may
fill the need for another experienced
man in the rear, providing relief for
Leo Beebe. Since Bill Barclay's in-
jury, Cappon has had to shift about
to find a suitable reserve combination.
Charley Pink's prolonged relief work
(Continued on Page 3)
57 Initiated By
Phi Kappa Phi
49 Students, 8 On Faculty
Honored At Banquet
Normallh a center sharing the
pivot position, Danny Smick will
see action against Northwestern's
high flying basketball quintet to-
night in the back line. Coach Cap-
pon made the shift to fill the hole
left by the absence of Bill Barclay.
Michigan Six
Meets Sarniaf
HereTonight
Varsity Sextet Will Seek'
Seventh Win Of Season
Against Border Outfit1
Michigan's hockey forces will swing
back into action after a week's rest,
to meet the powerful and highly re-c
garded Sarnia Imperials tonight att
the Coliseum.
The game, which will start at 8
p.m., will be the Wolverine's ninth
of the current season and the Varsity
will be seeking its seventh win. Fol-
lowing this evening's encounter the
sextet does not play again until Feb-
ruary 12, taking the lay-off for final1
examinations.
Coach Eddie Lowrey's men will be9
at full strength for the tussle which
from all indications promises to be a
close one. The Imperials recently
held the strong Holzbaugh team of
the Michigan-Ontario League to a 3-0
score giving evidence of their tight1
defense.
The main thing that the Michigan1
team fears in tonight's game is theI
danger of a let-down after their Min-
(Continued on Page 3)
Birthday Dance
Tickets On Sale
Funds From President's
Ball Will Help Fight
U.S. Infantile Paralysis'
The sale of tickets for the Presi-
dent's Birthday Ball to be held in the
Union and League ballrooms, ,Jan. 29,1
was officially begun when Robert O.
Morgan, assistant general secretary
of alumni, bought the first ticket
from Mrs. Albert J. Rapp, in charge
of patrons' ticket sales.
Judge Robert B. Sample has been
named honorary chairman by Arthur
C. Lehman, local attorney, chairman
of the committee on arrangements.
Sheriff Jacob C. Andres will be treas-
urer of the affair.
The event, at which students and
townspeople will dance informally to
raise funds for the nation-wide battle
against infantile paralysis is expected
to draw a capacity crowd. No part of
the funds raised will be retained lo-
cally.
"We hope that the students will co-
operate this year as well as they have
in past years in attending the ball,"
said Mr. Lehman.
Half Billion 'Naval
Bill Passes House
WASHINGTON, Jan. 21.- () -A
$553,266,494 appropriation for the
navy, one of the largest in peace-
time, won House approval today af-
ter some legislators made an un-
successful fight to eliminate funds for
starting construction of two $70,000,-
000 battleships.
Board Names
Committee To
Study Literary
Magazine Need
Michigan Daily Project Is
Examined By Professors
Of Publications Board
Decide To Abandon
Panorama Venture
The Board in Control of Student
Publications yesterday appointed a
committee of three to determine the
need for a campus literary publication
and draw up plans for such a mag-
azine.
It rejected a request submitted by
former staff members of Panorama
to revive the magazine.
Prof. Louis A. Strauss of the Eng-
lish department, a member of the
Board, was selected chairman of the
group. He will be assisted by Prof.
Edson R. Sunderland of the Law
School and Prof. William A. Mc-
Laughlin of the Romance Languages
department, both Board members.
The Board made its decision after
hearing a petition submitted by Ed-
ward Magdol, '39, who is seeking to
revive the Daily's Sunday supplement
of 1922 to 1925.
1 Need Recognized
Though the Board did not mention
any plans for a specific publication, it
recognized the need for a campus lit-
erary magazine and expressed the de-
sire to see some writing medium spon-
sored.
For financial reasons, the Board
had previously announced its inten-
tion to discontinue publishing Pan-
orama, which it characterized, how-
ever, as a splendid work. The request
before it yesterday was drawn up by
staff members and" proposed imme-
diate revival with a reorganized staff.
The Board hinted that it might
consent to republishing Panorana in
the future.
Panorama was to have been a new
step in college publications and re-
ceived the support of Many wv
it first appeared. Five issues ap
peared before the Board decide to
discontinue it.
Giovanni Giovannini of the Eng-
lish department announced that the
English Journal Club's committee to
investigate the desirability of a cam-
pus literary medium had postponed
its meeting until the Board's group
met, probably during next week.
Many Students Interested
Several students have already no-
tified the Journal Club that they
would be willing to work for the pub-
lication. All others interested have
been asked by Mr. Giovannini to send
in their names.
The announcement made by the
Board follows:
"The Board in Control of Student
Publications moved that the note be
referred to a committee of Professor
Strauss, Professor McLaughlin and
Professor Sunderland with the request
that they consult with such persons
as would be interested in a literary
publication and report their findings
to the Board."
It is understood that when the
Board saw the need for some mag-
azine, it meant one devoted to "prose,
poetry and essays." Since the failure
of Contemporary to reappear this fall,
there has been no literary publication
for undergraduate students.
Court Clears
Greyhound Co.
Payne Dismisses Charge
AgainstBus Line
A complaint against the Greyhound
Bus Lines by the Michigan Public
Utilities Commission because of al-
leged violation of state public utili-
ties regulations, was dismissed yes-
terday by Justice Jay Payne who
said the company was acting "fully
within its rights."
The Commission's action was con-
tested by the bus company as a test
case. The Commission contended
that the bus company could not
bring special buses into the city to
transport students to their homes
Christmas vacation without a spe-
cial permission to operate off their
regular routes.
According to Thomas Draper, '39,
Union terminal representative, the
decision makes it possible for the
company to continue to run special
buses for students.
c
That the complainants will suffer Final plans for a supper to be held
substantial future damages as the at 6 p.m. tomorrow in the League
result of being forced to meet lower were announced yesterday following
TVA rates, but that these will be a meeting of representatives of wom-
"damages in the absence of legal in- en's dormitories and League houses
jury." I and of Assembly and Congress, inde-
pendent women's and men's organ-
izations.
H eller Predicts All men and women attending the
supper are urged to come stag and
Ito make reservations by Saturday
Russo - Germ a noon. The charge for tickets, which
will be available at the League and
U kraine W ar Union desks, will be 35 cents.
Entertainment after the supper-will
feature group singing, a treasure
The current Nazification of Ru- hunt, ping pong, bridge and darts, for
mania is a step nearer to war be- which the third floor of the League
tween Germany and Russia for pos- will be utilized. The committee em-
session of the Ukraine, Dr. Bernard phasized that the affair is open to
Heller said in his sermon last night anyone who cares to attend.
at the Hillel Foundation. Faculty guests will be Dean and
Hitler realizes, Dr. Heller said, that Mrs. Joseph Bursley and Prof. and
England will not easily part with her Mrs. John Emswiler.
colonies in order that Germany may
have "additional territory for her
crowded and growing population and Loyalists, Insurgents
his recourse, therefore, is to obtain
and annex part of Ukraine." Exchange Air Raids
In such a war, it is important for
Germany to be sure of having a BARCELONA, Jan. 22.-(Satur-
friendly buffer state as well as a clear day) -(P)-A Government com-
path to strike the enemy, Dr. Heller munique said today 47 persons were
said, and she is therefore seeking tokiue sy t 47 rsons
dominate Czechoslovakia and make killed by Insurgent air raids in East-
satellite of Rumania. ern Spain yesterday while Govern-
The Nazis have been lavish, Dr. ment war planes bombarded Sala-
heer carge in their. expenditure manca, Insurgent capital, in reprisal.
of funds for German propaganda in The communique said nearly nine
Rumania, and he also pointed out tons of explosives and shrapnel were
that Germany has deliberately shift- dropped on Salamanca by 20 large
h Gi-%nr r n hsa st de l rately bombers.
Phi Kappa Phi, national honorary
Britain H ears Japs Are Buildi society, initiated 49 students and
eight faculty members at its annual
e + * winter banquet yesterday at the
Gigantic New Super-Battleships League.
Dr. Nathan Sinai, director of the
public health foundation, addressed
LONDON, Jan. 21.--UP)-Great Bri- permitting signatories to break the the meeting on "The Panorama of
tain today instructed its ambassador restrictions to compete with larger Public Health." Pointing out that
to Tokyo to find out if Japan secretly warships of other nations. there has been a great development
was building super-battleships of The French naval committee al- in the public health field in recent
more than 35,000 tons. ready has been considering the build- years, Dr. Sinai stressed especially the
The admiralty declared there still ing of two 42,000-ton battleships to fact that tuberculosis has been great-
was sufficient time to modify Britain's meet the two of 35,000 tons recently ly decreased. Both in cities and rural
1938 battleship tonnage if published announced by Italy and those Japan districts TB has been made less im-
reports of Japan's naval plans were is believed to have projected. portant in the doctor's scheme of
confirmed. - Battleships were expected to figure things, he said, with the rural fields!
The foreign office was described as prominently in the British naval plans leading in the improvement.
having "an open mind" regarding the to be presented to Parliament in mid- The next great field of public health I
reliability of the persistent reports February. Britain was reported to will be the prevention of pneumonia,
that Japan was constructing or plan- be planning to put its fleet, now close- Dr. Sinai declared. States will es-
ning to construct 43,000-ton battle- ly held to the Mediterranean, on a tablish several central bureaus to
ships mounting 18-inch guns. two-hemisphere basis, take care of this disease with local
Should the reports be borne out (The Tokyo press today played up doctors cooperating with them, he
by Sir Robert Leslie Craigie's report, in stories and pictures reports the continued. In conclusion, Dr. Sinai
Great Britain, the United States and United States might build battleships declared that only 600 of the 3,000
France would be released from the of more than 40,000 tons with 18-inch counties in the U. S. are adequately
1936 London Naval Treaty limita- guns.) organized to take care of public!
tions to 35,000 ton capital ships and The United States, Great Britain health.